Page 71 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.70, # 1, 2013, pp. 46-76

Although the customs policy significantly affects the structure of the industry,

it plays significant role in protection of the local market. This is due to the fact that

the development of local industry is possible only owing to the foreign markets and

it is not possible to realize the full capacity of the production on the local market.

At the same time the customs could be used as tool for foreign policy. In other

words, for the country, which does not provide the appropriate conditions for the

Azerbaijani goods, the government could apply these methods. At the same time

the induction of the country into the World Trade Organization will require the

update the tariff system. Currently as a result of negotiations the tariff level for the

industrial products was agreed at 10.4% level. However it is planned to set them on

0-50% level. The joint to the World Trade Organization considers the application

of high tariffs for weaving products, furniture and metallurgy. However the

products which are used as raw materials in Azerbaijan are planned to be free of

tariff. We believe that this approach is optimal. We would like to note that

identification of tariff rates for industrial products without the respective

consolidated policy creates difficulties. The government should participate in

negotiation and establishment of tariff plan within WTO. This will provide the

opportunities for the government in the future. However we would like to note that

sometime the industry is located close to consumers or close to suppliers.

Therefore allocation of some industries limit the ways for influences them by the

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